- (1.) HEARD learned counsel for the Revenue as well as learned counsel for the respondent. The instant appeal is preferred against the order dt. 11th July, 2011 passed by Tribunal, Circuit Bench, Ranchi, in the case of the respondent being ITA No. 125/Ran/2010, whereunder the Tribunal has allowed the appeal of respondent and set aside the order passed by CIT in F. No. 12A -72/10 -11/1005 under s. 12A/12AA of the IT Act, 1961 and further directed the CIT to renew the registration under s. 80G and also grant of registration under s. 12A/12AA of the IT Act, 1961.
(2.) THE respondent was granted registration under s. 12A/12AA on 28th July, 2006. The respondent filed an application for approval of renewal of exemption under s. 80G on 19th Dec., 2009 in Form No. 10G. After hearing the parties, the CIT cancelled the order for registration already granted to the respondent under s. 12AA(1)(b) vide its order dt. 19th May, 2010. As per cl. 5.10 of the trust deed furnished along with the Form No. 10G, the Board of Trustees have the discretion to do all such works as deemed fit by them which means that such work may be or may not be in accordance with the object of the trust. Further, held that as per s. 12(1) of the IT Act, 1961 "as any voluntary contribution received by a trust created wholly for charitable or religious purposes or by an institution established wholly for such purposes (not being contribution made with a specific direction that they shall form part of the purpose of the trust or institution) shall for the purpose of s. 11 be deemed to be income derived from property held under trust wholly for charitable or religious purposes and the provisions of that section and s. 13 shall apply accordingly".
(3.) OBSERVING that the object mentioned at para 5.10 of the trust deed of the applicant that the Board of Trustee can do all such works, as deemed fit by them and they have a discretion to do all such works which may or may not be in accordance with the object of the trust, the CIT exercising the powers under s. 12AA(3) of the IT Act, held that the cl. 5.10 of the trust deed are not considered to be genuine in terms of all of its objects are concerned. On those findings CIT cancelled the registration already granted on 28th July, 2006.;